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This Blog,its owner,creator & contributor is neither a research analyst nor an Investment Advisor and expressing opinion only as an Investor in Indian equities.He/She is not responsible for any loss arising out of any information,post or opinion appearing on this blog.Investors are advised to do own due diligence and/or consult financial consultant before acting on any such information.Author of this blog not providing any paid service and not sending bulk mails/SMS to anyone.

Saturday, November 21, 2015

In stock market investment, patience is necessary. If you don’t
demonstrate patience, you will either miss out on opportunities to buy
securities at the right price, or you will sell prematurely and lose
money in the market. Whether you are new to stock market investing or
have been doing it for years, taking your time and making smart,
well-thought out decisions will help you achieve greater success.
Accordingly, here are three things you should focus on to cultivate
patience when investing:1. Knowing when to buy
Determining when is the best time to purchase new securities should
involve lots of research and careful consideration. You will have likely
studied past performance, fundamentals and identified the ideal entry
point. If, however, as you wait for the price to come down, it suddenly
starts edging upwards, you should not panic and place an order in haste.
By doing this, you not only give up potential profit, but you also
nullify all the research and planning you have done up till that point.
The point is that once you set a purchase price, you should stick to it.
The whole reason you do research is to avoid guess work and impulse
decisions. Emotional stock market investing will eventually lead to
disappointing returns. Investopedia explained that investors who violate
their discipline can end up in ruin. As such, that’s why sticking with a
predetermined investment strategy will help mitigate the losses that
result from emotional investing, lack of patience and failing to look
ahead. Exhibiting patience is not always as easy it sounds, but the best
investors and traders are able to trust their own discipline. By using
sound methodologies and allowing your research to serve your strategy,
you avoid buying prematurely. Remind yourself that patience is the most
important investment discipline.2. Knowing when to sell
Zentrader pointed out that private equity is consistently one of the
highest performing asset classes because investors buy and sell when
prices are optimal. They purchase companies and securities at a bargain
and then hold them for a full business cycle. When the investment has
appreciated enough, the investors sell them. Selling when conditions
have improved substantially is how to make a huge gain. What retail
investors should learn from this example is that, having bought a
security at the right price, the next thing to do is wait. If you have
done your research, then you have determined the best time or conditions
to sell. You should hold steadfast in that decision. According to
Investopedia, there are times when you can stick to your strategy
diligently and the price of the security does not move. This is when
patience will serve you the most. You can go back and re-examine your
strategy and look for something you may have missed, but don’t sell
impulsively. If the outlook for the security has changed, then you can
set a new price at which to sell. Alternatively, you may find that your
analysis is on track and that the security will eventually get to where
you want it to be. In that case, continue to hold your position. Many
institutional investors lose money in the market because they don’t know
how to be patient. They will make sudden decisions that limit their
ability to make a real profit. Knowing when to sell is essential.3. Knowing yourself
The most important thing when cultivating patience is knowing yourself.
If you are aware of your tendency to be impulsive and can react
emotionally to volatility in your investment portfolio, then you can
implement certain safeguards to ensure that your temperament doesn’t get
the best of you. Zentrader mentioned that most studies done on the
behavior and results of individual investors reveal that they routinely
underperform the stock market over time. The main reason for this is
that retail investors are too focused on the short term and don’t put
enough time into forming strategies and waiting for them to materialize.
It is also important to highlight that most of us aren’t experienced
day traders. Making money with short term positions isn’t easy. The only
people who really make money from frenzied buying and selling activity
are brokers. However, long term strategies allow investors to capitalize
on the simple fact that markets appreciate over time. Institutional
investors who spend their days studying and predicting market
fluctuations may be able to play the arbitrage game, but for the retail
investor who wants to invest in the market as a hobby or as part of a
retirement plan, the best way to make money is be patient.Ultimately, like in any field, study or discipline, hard work pays
off. Many investors operate under the assumption that making money
through stock market investing is easy, but the truth is that it
requires research, analysis and patience. Zentrader also pointed out
that while it seems obvious, the best way to invest is to buy low, hold
on to securities for a long time and sell high. This is what investment
gurus like Warren Buffet advise individual investors to do.

Dear sir your old recomondation eland apparel (mudra lifestyle) is moving very fast and there is lot of things happening likeNow eland has bought back the whole promoter stakeQoQ improvementIn the edge of turn aroundPossibility of entering retail because of new rules

Don't expect multiplication of capital in every stock invested . Wash of capital in some cases is part of investing .My opinion on this one clearly mentioned as a comment below the content of following link.

I think , the focus of management of Butterfly to develop business lost to a certain extent when they give priority to execute the TN Government orders . Future depends on how early they correct this .

Following you since 2011 and did not find any better blog or value picker or humble person than you.Hats off to you.When I turn back to last four years, so many multi multi baggers though I could not hold many of those because of impatience.Any how do you track Manali petrol?With expansion plans ,zero debt and falling crude,is it worth investment for long term.Thanks

VP sir, Any change of views on DION global after continues quarters bad results...though its products got good response why the business is not improving. Does the implementation of BASEL III norms by banks will help DION global businesses improvement. Your views please

Hi VP Sir,I have been following you and find you very knowledgable and kind...You adviced a script named ILFS Engineering and construction at 96 and later at 84 but now the stock is trading at 58-60 rupees.. Is this stock still a buy sir and if yes can you please tell the reason and a tentative target?

Thanks you very much for all the replies to my previous queries and I have one sincere request for you.

Majority of the members of this group have greatly benefited because of your recommendations through this blog for past many years. But now, due to new SEBI regulations, you are not able to do provide detailed company analysis and views. Now you are giving financial results updates which is allowed as per SEBI rules for your old recommendations and expressing your view for the companies asked by blog members in the current format.

Sir, is it possible for you to post the financial data of at least one company which you feel is turn around or value buy every month so that members can really benefit from it and do their own analysis for taking investment calls?

Kindly consider this request so that all the members can benefit from your greatest skills of identifying potential winners which is missing in our current blog for last few months.

Even when I posted the reasoning, lot of people jumped into it without reading the same in full and analyzing whether that particular stock is suitable or not .In such a situation what will be the story if I post just a result ?

Sir, Kindly consider the above request... There will be people who are not ready to take time in analysing the companies... However there are lots of people who are serious about investments and learning... You are an great asset and inspiration for all the retail investors.. Take it as a request and consider it Sir. Thanks!

Dear VP Sir, You told earlier that you would consider posting your recommendations through money control & face book where it would not attract SEBI restrictions. Why don't you do this for the benefit of small investors like many of us.

You just check the fate of one message I posted in MMB in the board of Lotus Chocolate recently,you will get the reason why I am not posting often in MMB .. Another blog writer ( as mentioned in his MMB Profile) simply deleted my message and put a 'Sorry' for that .Studying a company and prepare a report need months effort but the same may vanished in a single click there . The message I posted under Lotus was in a few sentences without anything offensive or violate MMB Code . The same thing may happen for any report we prepared after lot of effort . Really sad to see people become more and more arrogant and do anything to defeat others doing similar activities.

When most of us has benefited from VP sir's guidance and learnings over the years, we must find a way to continue learning from the hard work VP Sir dedicates for us. There are not just few people who guides in the market now a days.

Perhaps, could we come up with some suggestions on how could we do so? About getting useful articles on learnings basics and research reports that VP Sir used to make? All this while complying with SEBI norms and of-course with VP Sir's comfort and approval.

Vp sir,There will be many ways to share your views, your effort should not be go waste and it should be utilized property. As a retail investor and poor people should get the right message through a right person like you. Only few people are there as like you whom we can trust. I personally request you to find a way to help us, there is will there is way. Under your kingdom we seen a success path with patients . The options which I could think of 1. GTS, WITH MANY CLUES AND SHARE THE ANSWER AFTER A WEEK. this is like a puzzle game not like a analyzer.2. Monthly once share a company result and will study about the company and discuss on the comment section. As like now, each comment you respond is very valuable.3. Can we have a private blog own by you, just for your knowledge and no one as rights to ask any questions on that.

Would like to thank you from the bottom of my heart... its because of your messages, guidance and advice that I recovered all my loss in the market... Be it skm, amines and plasticizers, subex, suzlon, camphor, caplin, arrow coated... can not thank you enough.. You have been doing a great job.. your blog has changed my life totally and I hope to reap more such benefits by patiently investing in future too...May God bless you... I have learnt a lot from you and the more I wait patiently, the more determined and passionate i become about value investing and patiently waiting in market.... Thank you very much... Keep up the good work...

Suggested at Rs.35 ( http://value-picks.blogspot.in/2013/06/astra-microwave-products-ltd-niche.html) and requested to take profit by partial profit booking . One can hold the free of cost shares at CMP Rs.145

Neither Taro nor Sun pharma invested in Suzlon,it is Dilip S Shanghvi , the promoter of Sun invested in Suzlon using his personal fund and it is his liberty to do whatever he like with his own personal fund .